MANCHESTER – A Superior Court judge has ruled that a former Surf and Stream Campground resident is entitled to relocation assistance, issuing the first major decision in a lawsuit that could affect dozens of people displaced when the Manchester Township campground closed.
In a July 31 ruling, Superior Court Judge Anthony Merlino found that plaintiff Katelynn Ludlum qualified for benefits under New Jersey’s Relocation Assistance Act after Ocean County purchased the campground for open space preservation. The judge rejected the county’s argument that Ludlum’s year-round residency at the campground disqualified her because it violated campground rules and municipal ordinances.
The county also argued the Relocation Assistance Act should not apply because it acquired Surf and Stream through a voluntary purchase rather than eminent domain. Merlino rejected that argument, concluding the statute applies to voluntary acquisitions as well.
Instead, Merlino concluded that under the regulations implementing the Relocation Assistance Act, a “lawful occupant” is someone whose occupancy was recognized by the property owner, regardless of whether the tenancy complied with zoning regulations.
Merlino repeatedly described the Relocation Assistance Act as remedial legislation designed to protect displaced occupants and said it should be interpreted broadly to achieve that purpose.
The ruling grants partial summary judgment in Ludlum’s favor and denies Ocean County’s request to dismiss her claim. While the decision applies directly to Ludlum, the court’s interpretation of the Relocation Assistance Act could shape the remaining claims brought by dozens of former Surf and Stream residents seeking relocation benefits.
Ludlum is represented by Kevin Starke Scott W. Kenneally of the law firm Starkey, Kelly, Kenneally, Cunningham, Turnbach & Yannone. Ocean County is represented by the Ocean County Counsel’s Office.
Judge Rejects County’s Interpretation
Ocean County argued Ludlum was not entitled to relocation assistance because she lived permanently in a campground where year-round residency violated Manchester Township ordinances, campground rules and state law.
Merlino found that argument inconsistent with the purpose of the Relocation Assistance Act. The judge concluded that “lawful occupant,” as defined by state regulations, depends on whether the property owner recognized someone as an occupant – not whether the tenancy itself complied with zoning laws.
“The fact that she was a year-round tenant in a campground…is not relevant to the determination of whether she was a lawful occupant for the purposes of relocation assistance,” Merlino said.
He found Ludlum satisfied the law because she paid rent, paid utilities and lived at the campground with the owner’s knowledge and permission.
Trailer Qualified As A Home
Ludlum lived at Surf and Stream from 2019 until December 2022 with her three children in a 39-foot Prowler travel trailer equipped with bedrooms, a kitchen, bathroom and utility hookups. She used the campground address for her children’s school enrollment, state health benefits and COVID-era rental assistance.
Although state law classifies the trailer as a recreational vehicle, Merlino ruled it qualified as a dwelling because it served as the family’s permanent residence because the regulations focus on how the structure is used, rather than its classification under state law.
“The trailer that Ms. Ludlum occupied qualifies under the residential unit category in the regulation’s definition of dwelling,” he ruled.
The judge also rejected the county’s claim that Ludlum left because of a private eviction rather than government action.
He noted eviction proceedings did not begin until negotiations for Ocean County’s purchase were underway, notices to residents referenced the county’s acquisition, and the campground owner ultimately waived unpaid rent.
“The impetus for her removal from the property…was the acquisition by the County, not her failure to pay rent,” Merlino concluded.
The legal ruling follows years of uncertainty for families who called Surf and Stream home. Before the campground closed, Ludlum told this reporter she feared losing the only stable housing she had been able to find after previously experiencing homelessness.
“We were homeless before we moved here,” she said in 2022 as residents pleaded with officials to recognize that many had nowhere else to go.
Working as a house cleaner while raising three children, Ludlum said she searched unsuccessfully for affordable housing as rents climbed throughout Ocean County.
“In order to get help from the state, they want you to lose everything,” she said. “They want you to be homeless, and with no job.”
Her concerns reflected those of many neighbors. As previously reported before the campground closed that residents worried they would end up living in motels, sleeping in vehicles or separating from family members because affordable housing had become nearly impossible to find.
For many, those fears became reality. When The Manchester Times revisited former Surf and Stream residents years later, many described lives that had never fully recovered. Some exhausted savings paying for motel rooms. Others relied on relatives for housing or struggled to overcome eviction records while searching for apartments.
Ludlum herself said she spent her income tax refund paying for motel rooms before moving from place to place with her children while trying to rebuild her life.
The Court’s Decision
Judge Merlino’s decision marks the first time a court has concluded that at least one former Surf and Stream resident was legally entitled to relocation assistance.
The court acknowledged the ruling could increase costs for Ocean County taxpayers but said relocation assistance is precisely what the statute requires. He noted counties have options during property negotiations to account for relocation expenses, while displaced tenants often do not.
The decision determines only Ludlum’s eligibility for relocation assistance. The amount of any benefits has yet to be decided, and the remaining plaintiffs’ claims remain pending. They must still pursue their individual claims, although the court’s legal interpretation is likely to influence those cases.
Even so, the ruling represents a significant milestone in litigation that began after the county’s purchase of Surf and Stream displaced dozens of families. Whether the same reasoning ultimately applies to the remaining plaintiffs will be decided in future proceedings. For Ludlum, however, the ruling marks the first judicial determination that Ocean County was legally obligated to provide relocation assistance after the campground’s closure.
